Senator: Say No to XM-Sirius Merger

Political opposition to the merger of satellite radio providers XM and Sirius increased on Wednesday, as the chair of the Senate antitrust committee sent a letter to both the FCC and Justice Department opposing the deal.

Saying it would cause "substantial harm to competition and consumers," Sen. Herb Kohl (D-Wis.) said the deal was unacceptable under antitrust law. He also said current communications policy forbids the merger as well.

Both XM and Sirius have argued that such a deal is necessary for the continued viability of the medium, and that it competes directly with other portable music devices such as the iPod.

However, opponents argue that leaving the nation's only two satellite radio companies to combine creates an unacceptable monopoly, and give XM and Sirius the ability to raise rates as they see fit.

These critics also have the agreements for the spectrum themselves on their side: signed in 1997, they specify that the two companies can never merge.

CEO-designate Mel Karmazin has pledged in hearings in front of Congress that the combined company will not raise rates. He has also offered to allow customers to block out adult channels, as well as receive a refund for channels they do not want.

Although Kohl is chairman of the antitrust committee in the Senate, there is little he could do to stop the merger. The final say lies with the DOJ and FCC, not Congress.